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The News God > Blog > Travel & Tour > The Benefits of Establishing a Company in Hong Kong: A Walkthrough Guide
Travel & Tour

The Benefits of Establishing a Company in Hong Kong: A Walkthrough Guide

Rose Tillerson Bankson
Last updated: July 1, 2021 9:46 pm
Rose Tillerson Bankson - Editor
July 1, 2021
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Did you know that Hong Kong has one of the strongest and fastest-growing economies in the world? In fact, in the first quarter of 2021, they have enjoyed GDP growth of nearly 8%!

Contents
Hong Kong Encourages Investment With Excellent Tax BenefitsHong Kong Is the Best Way to Access the Chinese MarketHong Kong Has a Sophisticated Legal SystemEnjoy the Benefits of Running a Company in Hong Kong

But how does Hong Kong create all of this success? Hong Kong encourages businesses to set up shop within their borders. With all of the incentives in place, could Hong Kong be the right place for your business?

Read on to learn everything you need to know about how basing a company in Hong Kong could benefit you!

Hong Kong Encourages Investment With Excellent Tax Benefits

At the end of the day, taxes are one of the most important features of a friendly business environment. No matter how much money you make, if a significant chunk of it automatically goes away, you will never have profits as large as you could have in a more tax-friendly environment.

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Hong Kong has a couple of different tax rates for business. As long as you make under 2 million Hong Kong dollars, your profits will be taxed at only about 8%! Even if you make more than that, the tax return only goes up to about 16%.

Hong Kong Is the Best Way to Access the Chinese Market

China has the largest market in the world because it has the largest population in the world. On top of that, China is quickly becoming a central hub for international business, science, and more.

It can be very difficult to access this extremely lucrative market for business overseas from the United States. There is a reason that people say that if you dig a hole in the United States you will get to China. China is on the far opposite end of the planet.

On the other hand, Hong Kong is not only near China, it shares a significant amount of culture with China. Chinese consumers are comfortable dealing with businesses based in Hong Kong, and the people in Hong Kong know a lot about how to handle business registration in China.

Hong Kong Has a Sophisticated Legal System

Running a business in China and other countries can sometimes feel like the Wild West. In contrast, Hong Kong has put a lot of effort into creating a predictable and robust legal system. They have even become specialists in resolving disputes between antagonistic business partners.

If you are interested in learning more about how running an international incorporation in Hong Kong could increase your profits, check out this business registration resource!

Enjoy the Benefits of Running a Company in Hong Kong

We hope that you learned something helpful in this brief article on the benefits of basing a company in Hong Kong. The world has exciting business opportunities if you are willing to look internationally to find them.

To keep up-to-date on the latest news in business, politics, world news, and more, take a look at our other articles!

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